Increased MRP dividend announced

Mighty River Power will pay an increased dividend of 13.5
cents a share after this morning reporting a sharp increase
in operating earnings and a $97 million lift in full year
profit to $212 million.

The partially privatised former state owned enterprise said
its result was above initial public offering forecasts of
early last year.

It said earnings from its expanded range of geothermal power
stations, which make up about 42 per cent of MRP's
generation, contributed to the result and it was able to
benefit from its differentiated retail brands amid intense
competition.

The lift in earnings came in spite of the year to June being
marked by the worst hydro inflows into the Waikato River
hydro catchment in the company's history.

Operating earnings (EBITDAF) grew 29 per cent to $504
million.

Significant one-off and non-cash impacts in the previous
year, relating to costs and significant impairments from
taking direct control of international geothermal investments
in Chile and the United States largely accounted for the
boost in year-on-year lift in net profit.

After adjusting for these impacts, underlying earnings were
up 3 per cent or $5 million.

Mighty River Power chairwoman Joan Withers said generation
from low cash cost renewables provided the foundation for
delivering above the IPO forecasts.

Chief executive Doug Heffernan said the company's
differentiated retail electricity brands performed well as
competition continued to intensify across all residential and
business segments.

He said the rate of switching from retailer Mercury Energy
was 2 per cent lower than the market average.

Withers said the performance against the IPO forecasts, along
with lower capital expenditure in the past financial year
meant that the board saw it as appropriate to declare an
increased final dividend of a fully imputed 8.3 cents (up 0.5
cents on the IPO forecast) to be paid to shareholders on
September 30.

The company expects earnings in the 2015 financial year to be
in the range of $495 million to $520 million -- subject to
any adverse events, significant one-off expenses or other
unforeseeable circumstances including hydrological
conditions.

Mighty River Power shares listed at $2.50 last year and
yesterday closed at 2.37.5c. They have traded as low as
$1.94.5c in the past 12 months.